Samsung SDI has signed a multi-year battery supply agreement with Mercedes-Benz worth more than 10 trillion won, or about $6.8 billion. The deal marks the South Korean battery maker’s first direct supply contract with the German luxury automaker.

It comes at a time of fast growth in the electric vehicle (EV) battery market. Industry forecasts predict growth from around $92.7 billion in 2025 to $181.8 billion by 2032. This rise is fueled by increasing EV adoption in Europe, China, and the United States.

The agreement strengthens Samsung SDI’s position in the premium EV supply chain. It also shows how automakers are reshaping their sourcing strategies to reduce risk, improve supply stability, and meet long-term carbon goals.

Mercedes-Benz Secures Long-Term Battery Supply for Next-Gen EVs

Mercedes-Benz will use Samsung SDI’s batteries in upcoming compact and mid-size electric SUVs and coupe models. These vehicles are expected to form part of the company’s next wave of electrification plans.

The batteries will use high-nickel NCM (nickel, cobalt, manganese) chemistry. This design improves energy density and driving range. It also supports longer battery life and higher output, which are important for premium EV performance.

The agreement also includes cooperation beyond supply. Both companies plan joint development work on next-generation battery technologies. This signals a deeper strategic partnership rather than a short-term contract.

Industry reports suggest the batteries will likely be used in Mercedes-Benz EV platforms from around 2028. This matches the company’s broader shift toward electric-first vehicle architecture, aligning with its Ambition 2039. 

Samsung SDI Expands Its European EV Footprint

The deal significantly strengthens Samsung SDI’s position in Europe’s premium automotive market. The company supplies batteries to major global automakers. This includes BMW, Volvo-linked platforms, and Stellantis joint ventures.

A Samsung SDI official remarked:

“This partnership brings together the innovative DNA of both companies. It is meaningful in that SAMSUNG SDI has secured a battery order aimed at strengthening its position in the global EV market.”

Europe is becoming a key battleground for battery suppliers. Automakers are moving away from single-source supply chains. They are also reducing dependence on China-based production networks due to geopolitical and logistics risks.

Samsung SDI’s entry into Mercedes-Benz’s supply chain adds scale and visibility. It also improves its exposure to high-margin luxury EV segments.

At the same time, the partnership supports Mercedes-Benz’s supplier diversification strategy. The company already works with LG Energy Solution and SK On for EV batteries, reflecting a multi-supplier model now common in the industry.

• RELATED: Tesla (TSLA Stock) Sparks $2.1B Samsung Battery Deal as Global EV Demand Charges Ahead

The $180B Battery Boom: Why EV Demand Is Still Accelerating

The global EV battery market continues to expand rapidly. Persistence Market Research says the market will grow at a compound annual growth rate (CAGR) of 10.1%. It should hit around $181.8 billion by 2032.

Other industry data shows strong near-term concentration. In 2025, the top two battery producers accounted for 55.6% of global installations, equal to 659.5 GWh out of a total 1,187 GWh, according to SNE Research.

This concentration highlights two trends:

• A small number of leaders dominate large-scale production.
• Mid-tier players compete for premium contracts and long-term OEM deals.

At the same time, EV battery demand is projected to rise by over 25% each year until 2030. This growth is driven by increased EV adoption in key markets and tougher emissions regulations.

This growth is also linked to broader energy transition trends. EV batteries are now central to national decarbonization plans, especially in Europe and North America.

Net-Zero Pressure Shapes Both Automakers and Battery Makers

The Mercedes–Samsung SDI deal is also shaped by climate targets and ESG pressure across the automotive value chain.

Mercedes-Benz has set a goal for its new vehicle fleet to become net carbon-neutral by 2039 across the full lifecycle, including supply chains and production. The company also aims to reduce CO₂ emissions per passenger car by up to 50% compared to 2020 levels.

To support this, Mercedes-Benz is expanding renewable energy use in production. It is also pushing suppliers to reduce emissions in materials such as steel, aluminum, and battery cells.

Samsung SDI is also increasing its focus on low-carbon manufacturing. The company has been expanding efforts in sustainable sourcing and battery efficiency improvements. It is part of a wider Korean battery industry push toward cleaner production and circular battery systems.

Mercedes-Benz has already introduced net carbon-neutral battery cell production requirements for suppliers in its EV programs. This means battery partners must reduce emissions across raw materials and production processes.

These policies are reshaping competition. Battery performance is no longer the only factor. Carbon intensity is becoming a key procurement metric.

Technology Focus: High-Nickel and Prismatic Battery Design

Samsung SDI’s batteries for Mercedes-Benz will use high-nickel NCM chemistry. This type of battery increases energy density while reducing reliance on cobalt over time.

Higher nickel content generally improves driving range. This is critical for luxury EVs competing on performance and long-distance capability.

The batteries will also use a prismatic format. This rectangular design improves space efficiency inside the vehicle. It also helps with thermal control, which improves safety and performance stability.

Key advantages include:

• Higher energy density for longer range,
• Better space utilization in vehicle design,
• Improved thermal management for safety, and
• Strong fit for compact and mid-size EV platforms.

These features are important as automakers move toward more compact EV architectures while maintaining premium performance standards.

Market Impact: Strategic Shift in EV Supply Chains

The Samsung SDI–Mercedes-Benz agreement reflects a wider transformation in the EV industry. Automakers are now prioritizing:

• Supply chain diversification,
• Long-term battery partnerships, 
• Access to advanced chemistry technologies, and
• Lower carbon production systems.

For Samsung SDI, the deal strengthens its position in the global battery race. It adds a major European luxury OEM to its customer base and increases visibility in the premium EV segment.

For Mercedes-Benz, the agreement supports its electrification roadmap while reducing reliance on single suppliers and improving supply chain resilience.

The financial scale of the deal also signals confidence in long-term EV demand, despite short-term market volatility in the sector. As EV adoption continues to grow and battery demand rises sharply toward 2030, partnerships like this are likely to become more common across the industry.

The agreement highlights a key shift. Battery supply is no longer just a procurement decision. It is now a strategic pillar of global automotive competition and decarbonization.

• READ MORE: The U.S. EV Supply Chain Race: Where Surge Battery Metals Fits in the National Critical Minerals Strategy

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USA Rare Earth is making a big move in the critical minerals space. The company plans to acquire Brazil’s Serra Verde for $2.8 billion. This deal includes $300 million in cash and 126.9 million new shares. This values Serra Verde at about $2.8 billion based on USA Rare Earth’s share price from April 17. The acquisition is expected to close in the third quarter of 2026.

This purchase connects one of the few heavy rare earth producers outside China with USA Rare Earth’s growing mine-to-magnet platform. It aims to create an integrated supply chain for mining, processing, and magnet manufacturing. This is key as governments and industries want to reduce their reliance on Chinese supplies.

Barbara Humpton, Chief Executive Officer of USA Rare Earth, stated:

“The acquisition of Serra Verde represents a transformational step in delivering on our ambition to build a global champion and the partner of choice in rare earth elements, oxides, metals and magnets. Serra Verde’s Pela Ema mine is a one-of-a-kind asset and the only producer outside Asia capable of supplying all four magnetic rare earths at scale, together with other vital REEs, such as Yttrium. Serra Verde’s global importance is evidenced by its 15-year offtake agreement with a special purpose vehicle capitalized by various U.S. Government entities, as well as private capital sources, for 100% of its Phase 1 Nd, Pr, Dy and Tb production.

By combining Serra Verde’s world-class operations and team with our processing, separation, metallization and magnet-making capabilities, we are advancing our goal of creating a fully integrated platform that will serve as a cornerstone of global rare earth supply security for decades to come.”

Serra Verde Adds Heavy Rare Earth Supply the West Has Been Missing

Serra Verde provides access to heavy rare earths like dysprosium, terbium, and yttrium. These materials are essential for permanent magnets in electric vehicles, wind turbines, robotics, and defense tech. Sourcing them outside China is challenging. Supply concerns are rising as demand grows.

Many Western projects focus on light rare earths, but Serra Verde offers valuable heavy elements. Its Pela Ema mine in Goiás began production in 2024 after over $1.1 billion in investments. It became the first operational ionic clay deposit in the West.

REEs from clay deposits at Pela Ema

• By 2027, Phase 1 is projected to produce about 6,400 metric tons of total rare earth oxide annually. The mine aims to supply over 50% of non-China heavy rare earths by 2027. These figures boost the asset’s strategic value, with growth potential beyond current operations.
• A Phase 2 expansion could double production.

This growth aligns with USA Rare Earth’s goal of building a complete rare earth supply chain. Serra Verde adds feedstock production, while Round Top in Texas offers another source of heavy rare earths. Together, these assets strengthen the upstream supply base. But the story goes beyond mining.

Building a Vertically Integrated Rare Earth Platform

USA Rare Earth has spent years creating a vertically integrated platform. They acquired Less Common Metals in the UK, adding rare earth metal, alloy, and strip-casting capabilities. An Oklahoma magnet plant, launching later this year, will enhance downstream manufacturing.

With Serra Verde, these assets connect Brazilian feedstock, U.S. project development, European metallization, and U.S. magnet production.

• ALSO SEE: MP Materials (MP Stock): The Rare Earth Magnet Powering America’s Clean Energy and Climate Goals 

Closing the Weak Links in the Supply Chain

According to the U.S. Geological Survey’s Mineral Commodity Summaries 2025, rare earth supply remains highly concentrated, with China continuing to dominate both mining and, more importantly, processing and magnet production.

Thus, this integration is crucial. Supply chain gaps have hindered Western rare earth ambitions. Mines without processing capacity face bottlenecks. Processing without secure feedstock risks supply. Magnet manufacturing without reliable materials can leave operations vulnerable.

This deal addresses these issues by combining multiple stages of the value chain. Strategic highlights from the acquisition show expansion opportunities across nearly every part of the platform.

• Upstream Supply Base: Upstream, Serra Verde’s Phase 2 growth paves the way for larger production volumes, while Round Top adds long-term potential. On the processing side, USA Rare Earth gains separation expertise through its partnership with Carester and plans to develop a rare earth carbonate separation line.
• Processing and Metallization Capacity: In metallization, the company aims to expand Less Common Metals’ reach in France, the U.S., and other markets to increase non-China metal, alloy, and strip-cast output.
• Downstream Magnet Manufacturing: Downstream, management sees potential to grow magnet manufacturing capacity for industrial customers focused on supply security. Together, these initiatives create a strategy that scales the entire supply chain rather than adding isolated assets.

Financial Structure Designed to Reduce Risk and Support Growth

The deal includes financial features aimed at reducing risk while supporting growth. Serra Verde secured a $565 million financing package from the U.S. International Development Finance Corporation to fund expansion through positive cash flow.

This eases financing pressure and supports scaling. It also has a 15-year, 100% offtake agreement for neodymium, praseodymium, dysprosium, and terbium, with minimum price floors, improving revenue stability and limiting commodity price risk.

Serra Verde expects $550–650 million in annualized EBITDA by 2027, with the combined company targeting about $1.8 billion by 2030 and roughly 80% cash flow conversion. The projections underline the deal’s transformational nature, focused on earnings growth and supply chain resilience.

 USA Rare Earth (USAR) Stock Jumps 15%

Meanwhile, USA Rare Earth secured a separate $1.6 billion funding package from the U.S. government earlier this year. The company expects more than $3.2 billion in pro forma liquidity, which includes around $1.2 billion in cash and $1.8 billion from milestone-based funding. This funding comes from DFC and the U.S. Department of Commerce loan facilities.

This government support shows that rare earth supply connects to industrial strategy and national security. Governments see critical mineral supply chains as essential for energy, advanced manufacturing, and defense. The deal’s financing reflects this change and improves the company’s financial outlook.

Significantly, USA Rare Earth (USAR stock) shares rose over 15% after the announcement, boosting the company’s market value to about $4.9 billion.

Overall, this acquisition marked a shift in how the Western rare earth industry approached supply security. Instead of relying on isolated mining projects, USA Rare Earth moved toward a fully integrated platform that connected mining, processing, metallization, and magnet manufacturing across multiple regions.

The deal strengthened access to heavy rare earths, improved supply chain control, and aligned closely with government-backed industrial strategy. While execution risks remained, the overall direction pointed clearly toward building a more secure and independent rare earth supply chain outside China.

• MUST READ: Rare Earth Demand to Triple by 2035: Can the U.S. Catch Up with China? 

The post USA Rare Earth (USAR) Stock Jumps 15% on $2.8B Brazil Rare Earth Acquisition, Giving Massive Boost to Western Supply Chains appeared first on Carbon Credits.

Uber Technologies has taken a deeper financial and strategic position in Lucid Group, signaling strong confidence in the future of autonomous mobility. However, despite a billion-dollar capital boost and a major robotaxi expansion plan, market sentiment around Lucid remains cautious. The latest developments highlight a widening gap between long-term vision and near-term execution risks.

Uber now holds 37.7 million shares, representing an 11.5% stake, following an additional $200 million investment in April 2026. This brings its total investment in Lucid to $500 million, making it one of the largest shareholders outside Saudi Arabia.

The controlling stake still lies with the Public Investment Fund (PIF), which owns more than 54% of Lucid. The fund also injected another $550 million into the EV maker through its affiliate Ayar Third Investment Co., reinforcing its long-term commitment.

Together, these investments form a $1.05 billion capital raise, strengthening Lucid’s balance sheet at a critical time. The funding will support production expansion, technology development, and liquidity needs.

• At the core of this partnership is a major commercial agreement. Uber has committed to purchasing at least 35,000 Lucid vehicles for its planned global robotaxi network. This marks a significant increase from its earlier commitment of 20,000 vehicles announced in 2025.

The scale of this deal is notable. Lucid delivered 15,841 vehicles in 2025, meaning the Uber order alone could double or even triple its annual production over the coming years.

• MORE DETAILS: Uber Accelerates Robotaxi Ambitions With Baidu and Lucid Partnerships 

Robotaxi Strategy Gains Momentum with Nuro Partnership

The collaboration goes beyond capital and vehicle supply. It forms a three-way ecosystem involving Nuro, which will provide the Level 4 autonomous driving system known as the Nuro Driver.

Each partner has a clear role. Lucid supplies premium electric vehicles, starting with the Lucid Gravity SUV. Nuro delivers the autonomous driving technology, while Uber integrates the system into its ride-hailing platform and manages fleet operations.

The first commercial deployment is targeted for later in 2026 in the San Francisco Bay Area.

Testing is already underway. Nuro has deployed nearly 100 Lucid Gravity vehicles across multiple U.S. cities to gather real-world data. Early pilot programs have also begun offering test rides to Uber employees, although safety drivers are still present.

Lucid’s upcoming midsize vehicle platform is expected to play a key role in scaling the robotaxi fleet. The company aims to deliver a competitive range using smaller battery packs while improving cost efficiency, interior space, and charging performance. The platform is expected to start below $50,000, making it suitable for both consumer and fleet markets.

Financial Backing Strong, but Execution Challenges Persist

Despite strong investor backing, Lucid continues to face operational hurdles.

For Q1 2026, the company pre-reported revenue between $280 million and $284 million, well below the market expectation of $433.8 million. At the same time, it posted an operating loss close to $1 billion and ended the quarter with roughly $700 million in cash.

Production and delivery numbers remain modest. The company produced 5,500 vehicles and delivered 3,093 units during the quarter, highlighting ongoing challenges in efficiently scaling operations.

Lucid also faced a 29-day disruption in deliveries of its Gravity SUV due to a supplier issue with second-row seating. This incident underscores supply chain fragility and the risks associated with ramping production.

While the company reported strong revenue growth of $1.35 billion in 2025, up 68% year over year, profitability remains out of reach due to high costs and continued investment.

Market Reaction: LUCID Stock Slides Despite Big News

Despite the strategic significance of the deal, market reaction has been negative.

Lucid’s stock fell sharply from $9.96 on April 2, 2026, to around $6.75 by April 20, marking a decline of roughly 32% in less than three weeks. Over the past 12 months, the stock has lost about 71% of its value.

Analysts, including TD Cowen and Baird, have lowered their price targets, citing concerns over dilution, continued cash burn, and execution risks.

In contrast, Uber’s stock has shown relative resilience, gaining about 6% over the same period, according to Stocktwits. This divergence reflects stronger investor confidence in Uber’s diversified business model compared to Lucid’s ongoing operational challenges.

The Bigger Picture: High Stakes, High Risk

Uber’s 11.5% stake represents more than a financial investment. It signals a deep strategic alignment with Lucid’s future and a strong bet on autonomous mobility.

For Uber, the partnership provides access to a dedicated EV supply tailored for robotaxi operations, along with greater influence over vehicle design and platform integration. For Lucid, the deal ensures demand, strengthens its financial position, and creates a pathway beyond the luxury EV segment.

However, risks remain significant. Autonomous driving technology still faces regulatory uncertainty, and execution challenges persist. Nuro’s Level 4 system must prove its safety and scalability in real-world conditions. At the same time, Lucid must ramp up production while addressing operational inefficiencies and relatively limited consumer demand.

The recent decline in Lucid’s stock reflects investor skepticism about the company’s ability to execute its ambitious plans.

Looking ahead, the focus will remain on consistent production growth, improved financial performance, and successful deployment of robotaxi services. Until then, even billion-dollar partnerships may not be enough to restore investor confidence.

In short, Uber is making a bold bet on the future of mobility, with Lucid at the center of that strategy. The outcome will ultimately depend on one key factor: execution at scale.

• ALSO READ: Lucid Motors Raises $1B and Names New CEO to Accelerate Robotaxi Push

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